Metaplanet: Why the Company Bets on Bitcoin?

Metaplanet: Why the Company Bets on Bitcoin?

user avatar

by Giorgi Kostiuk

2 years ago

Metaplanet, a notable player in Japan's investment market, is gaining attention with its significant Bitcoin investment. Amid Japan's economic challenges, the company sees Bitcoin as a hedge against instability.

Buying Bitcoin: Strategy and Approach

Since April 2024, Metaplanet has been aggressively increasing its Bitcoin holdings, making the cryptocurrency its primary treasury reserve. It started with acquiring 117.7 BTC for $7.19 million. Later, the company decided to borrow $6.8 million from MMXX Ventures for further purchases. In October, it bought another 156 BTC for $10 million, accounting for about 19% of the company's total market value.

New ¥1.75 Billion Bonds

Metaplanet announced issuing ¥1.75 billion ($11.8 million) in bonds with a low interest rate of 0.36% to further invest in Bitcoin. Every bond was picked up by EVO FUND, indicating investor support for this risky strategy. The bonds are not directly collateralized, but there's a first priority mortgage on the Royal Oak Gotanda Hotel, owned by the subsidiary Wen Tokyo Inc.

Future of the Company: What's Next?

Metaplanet continues its Bitcoin investment strategy. The question remains: will this help the company withstand Japan's economic challenges, or will market volatility create additional challenges? The company has to prove the viability of its strategy.

Currently, Metaplanet is betting big on Bitcoin. Regardless of the outcome, this story is one to watch.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

JP Morgan Asset Management Launches Tokenized Money Market Funds on Solana

JP Morgan Asset Management has launched two tokenized money market funds, MONY and JLTXX, on the Solana blockchain for qualified US investors.

user avatarZainab Kamara

Bitwise Dogecoin ETF Reaches Liquidation Distribution Date

The Bitwise Dogecoin ETF has reached its announced liquidation distribution date on October 22, with remaining shareholders set to receive cash based on the fund's net asset value.

user avatarSon Min-ho

Solayer Pay Launches Direct Stablecoin Deposits for Enhanced User Experience

Solayer Pay has launched a feature allowing direct stablecoin deposits from five major blockchain networks, simplifying the funding process for users.

user avatarAyman Ben Youssef

CMCC Global Introduces Tokenized Fund Strategies

CMCC Global is introducing two fund strategies as tokenized securities through Tether's Hadron infrastructure and Bitfinex Securities under El Salvador's regulations.

user avatarTando Nkube

Senator Blumenthal Investigates Tether's Payments to Consultancy

Senator Blumenthal investigates Tether's payments to consultancy Nxum over potential ethics concerns.

user avatarKofi Adjeman

Blockchain Association Pushes for Crypto Tax Legislation

The Blockchain Association advocates for bipartisan changes to cryptocurrency tax regulations, seeking a de minimis exemption for small transactions and clarity in tax reporting for digital asset users.

user avatarNguyen Van Long

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.